Governments across the world continue to promote the shift to electric vehicles as they seek to combat climate change and global warming significantly provoked by the traditional transportation sector.
In effect, the global electric vehicle value chain receives major government support to continuously deliver innovations in emerging technology.
However, major EV advancements do not only aid in achieving environmental goals as companies involved in the value chain also provide investors opportunities to gain profit. Without further ado, here are the best EV-related stocks to buy for greater returns.
Best EV stocks as of November 2023
|Company (Ticker)||Market Capitalization||TTM Revenue||Price/Sales Ratio|
|Tesla Inc (TSLA)||$688 billion|
|Ford Motor Company (F)||$41 billion|
|Li Auto Inc (LI)||$40 billion|
|ON Semiconductor Corp (ON)||$28 billion|
|Rivian Automotive Inc (RIVN)||$16 billion|
|XPeng Inc (XPEV)||$15 billion|
|LiveWire Group Inc (LVWR)||$2 billion|
|AEHR Test Systems (AEHR)||$1 billion|
As expected, the American electric vehicle pioneer Tesla is at the top spot of the list with its unprecedented market capitalization of $688 billion. Its global market dominance is expected to remain with the latest UAW strikes affecting the EV plans of its closest rivals, Ford, GM, and Stellantis.
America’s legacy automaker Ford followed with a $41 billion market cap, while Chinese automaker Li Auto claimed the third spot.
Li Auto is currently a strong EV stock in the world’s largest auto industry. Its deliveries reached a record of 40,422 units in October (up more than 300% YoY), signifying the company’s first time ever to cross the 40,000 unit threshold.
The report also noted that LI stock offers numerous investor benefits based on price forecasts, with delivery results serving as a strong indication.
XPeng also demonstrated rapid growth in the EV space, with Q2 2023 deliveries reporting a 27% QoQ increase to 23,205 units. Last month alone, it managed to deliver a record of 20,000+ units, nearly similar to the figures for the whole second quarter.
CATL to achieve double-digit stock growth
CNBC reported that Chinese electric vehicle battery giant CATL can potentially achieve “double-digit” gains in its stock. Apparently, it is currently the largest stock in terms of market cap on the Shenzhen exchange, even surpassing BYD.
For context, CATL supplies EV batteries for major players like Tesla and BMW. Despite an almost 13% drop in CATL stocks all year, analysts remained optimistic with its 189.03 yuan ($26.25) close on Friday.
“We maintain our Buy rating for CATL on its first-mover advantage in localized production in EU.”Nomura analysts stated in a November 6 report
UBS analysts also indicated its price forecast for CATL stock of 400 yuan per share on October 19, up 111% from Friday’s close. This significant confidence is due to CATL’s groundbreaking Qilin battery.
The industry analysts further asserted that CATL will see a quarter-on-quarter increase in its Q4 2023 deliveries owing to its Jiangxi lithium mine that has already begun production.
EV products in the pipeline
CNBC also noted that CATL’s stock is expected to increase further in the coming quarters with the number of products it plans to release.
“CATL has already achieved a breakthrough in sodium-ion battery chemistry, and we expect to see the mass adoption of such batteries very soon. A model of Chery’s iCar brand is expected to be equipped with CATL’s sodium-ion battery and go on sale in early 2024.”Counterpoint Research’s Peter Richardson said in a Wednesday note
Li Auto is also set to launch its first-ever BEV model with CATL’s Qilin battery technology.
It is worth noting that investors purchase stocks from these EV-related companies due to their growth prospects. Nonetheless, you should still carefully monitor these companies as declining sales for over a couple of quarters may adversely affect the stock price.